Why Tesla Stock Drove Into a Ditch in October
Electric vehicle powerhouse Tesla (NASDAQ: TSLA) posted another quarter of impressive growth, but investors were more focused on CEO Elon Musk's efforts to temper expectations about what is to come. Shares of Tesla fell 19.7% for the month, according to data provided by S&P Global Market Intelligence, as investors digested the numbers and tried to make sense of this much-debated company.
Tesla has established itself as a world leader in the production of electric vehicles, and that trend continued in the third quarter. In mid-October, Tesla announced revenue up 9% year over year and deliveries up 27%.
But gross margin fell to 17.9% from 25.1%, and net income was down 44% to $1.8 billion due to higher costs related to factory upgrades and pricing discounts. CEO Musk warned that further discounting could be required as Tesla deals with competitive pressures and tries to sell into a more skittish economy.
Source Fool.com
Tesla Inc Stock
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